Philippines signs fresh $600-M loan with World Bank

The Philippines has inked a new $600-million loan agreement with the World Bank to bring the country’s total loan and grant commitments from the multilateral lender to an estimated $7.94 billion, the Department of Finance (DOF) announced Monday.

Signed last Friday, July 7, 2023, the latest loan agreement is for the Philippine Rural Development Project (PRDP) Scale-Up, which seeks to make the agriculture and fisheries sectors to be more competitive, sustainable, and technology-based.

According to the DOF, the project covers 82 provinces across all the regions of the country, with a focus on areas where about half of the Philippines’ 109.03-million agriculture and fisheries population reside.

It includes rural infrastructure and enterprise subprojects, which are estimated to benefit 450,000 farmers and fisherfolk, and generate 42,000 employment opportunities.

The total project cost is $818 million, with the remaining $218 million funded by the national government and the involved local government units (LGUs).

Once completed, the Department of Agriculture (DA) — currently headed by President Ferdinand “Bongbong” Marcos Jr. — seeks to transition into a regular locally-funded program.

Based on its policy framework uploaded on the DA website, the PRDP Scale-Up has five components — national and local level planning, rural infrastructure market linkage, enterprise development, project implementation support, and contingent emergency response.

Just last month, the Philippines signed $1.14-billion worth of loan agreements with the World Bank, including $750 million for the Philippines First Sustainable Recovery Development Policy, $276 million for two projects of the DA’s Bureau of Fisheries and Aquatic Resources, and $110 million for the Department of Education’s Teacher Effectiveness and Competencies Enhancement Project.

The latest data available from the Bureau of the Treasury (BTr) show that the national government’s outstanding debt stood at P13.911 trillion as of end-April, reflecting a P52.24-billion increase from the previous month.

Just recently, Budget Secretary Amenah Pangandaman was reported to have indicated that next year’s borrowings would amount to P2.46 trillion, including P1.968 trillion to be sourced locally, and P492 billion from overseas creditors.—KBK, GMA Integrated News